By:  Janek                                                        S.B. No. 62 

Substitute the following for S.B. No. 62:                                     

By:  Harper-Brown                                             C.S.S.B. No. 62 



A BILL TO BE ENTITLED

AN ACT

relating to limiting the use of eminent domain to take private 
property for private parties or economic development purposes and 
to certain eminent domain procedures.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle E, Title 10, Government Code, is 
amended by adding Chapter 2206 to read as follows:

CHAPTER 2206.  LIMITATION ON USE OF EMINENT DOMAIN FOR PRIVATE 
PARTIES OR ECONOMIC DEVELOPMENT PURPOSES
	Sec. 2206.001.  LIMITATION ON EMINENT DOMAIN FOR PRIVATE 
PARTIES OR ECONOMIC DEVELOPMENT PURPOSES.  (a)  This section 
applies to the use of eminent domain under the laws of this state, 
including a local or special law, by any governmental or private 
entity, including:
		(1)  a state agency, including an institution of higher 
education as defined by Section 61.003, Education Code;
		(2)  a political subdivision of this state; or                         
		(3)  a corporation created by a governmental entity to 
act on behalf of the entity.
	(b)  A governmental or private entity may not take private 
property through the use of eminent domain if the taking:
		(1)  confers a private benefit on a particular private 
party through the use of the property;
		(2)  is for a public use that is merely a pretext to 
confer a private benefit on a particular private party;
		(3)  is for economic development purposes, unless the 
economic development is a secondary purpose resulting from 
municipal community development or municipal urban renewal 
activities under Chapter 373 or 374, Local Government Code, or 
Section 311.005(a)(1)(I), Tax Code, to eliminate an existing 
affirmative harm on society from slum or blighted areas; or
		(4)  is to raise revenue to meet the cost of a public 
project if the property being taken is not otherwise necessary for 
the successful or safe operation of that public project, provided, 
however, that nothing in this section shall prohibit the 
distribution of surplus toll revenue as otherwise allowed by law.
	(c)  This section does not affect the authority of an entity 
authorized by law to take private property through the use of 
eminent domain for:
		(1)  transportation projects, including railroads, 
ports, airports, or public roads or highways;
		(2)  water supply, wastewater, flood control, and 
drainage projects; 
		(3)  the operations of a common carrier or energy 
transporter;       
		(4)  the provision of utility services;                                
		(5)  a sports and community venue project approved by 
voters at an election held on or before December 1, 2005, under 
Chapter 334 or 335, Local Government Code; or
		(6)  public infrastructure.                                            
	SECTION 2.  Section 203.052, Transportation Code, is amended 
by adding Subsection (c) to read as follows:
	(c)  The commission may not condemn property for a purpose 
described in Subsection (b)(9) unless:
		(1)  subject to the provisions of Section 227.041(b-1), 
the purpose is for a gas station, convenience store, or similar 
facility; or
		(2)  the purpose is to provide a location between the 
main lanes of a highway or between a highway and a department rail 
facility for a gas station, convenience store, or similar facility 
that:
			(A)  provides services to and directly benefits 
users of a toll project; and
			(B)  is not located within 10 miles of an 
intersection of the toll project and a segment of another state 
highway that is designated as an interstate highway.
	SECTION 3.  (a)  An interim committee is created to study the 
use of the power of eminent domain.
	(b)  The interim committee consists of:                                        
		(1)  five members of the senate appointed by the 
lieutenant governor; and   
		(2)  five members of the house of representatives 
appointed by the speaker of the house of representatives.
	(c)  The lieutenant governor shall designate one senator 
appointed to the interim committee to act as chair.  The speaker of 
the house of representatives shall designate one member of the 
house of representatives appointed to the committee to act as vice 
chair.
	(d)  The interim committee shall:                                              
		(1)  study the use of the power of eminent domain, 
including the use of the power of eminent domain for economic 
development purposes; and
		(2)  prepare a report of the committee's study for the 
80th Legislature.    
	(e)  The report required by Subsection (d)(2) of this section 
must be filed with the lieutenant governor and speaker of the house 
of representatives not later than January 1, 2007.
	SECTION 4.  Chapter 2206, Government Code, as added by this 
Act, applies only to the taking of private property by eminent 
domain for which a condemnation petition is filed on or after the 
effective date of this Act.  A taking for which a condemnation 
petition is filed before the effective date of this Act is governed 
by the law in effect immediately before that date, and that law is 
continued in effect for that purpose.
	SECTION 5.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect November 1, 2005.